The Looming Obama Depression

Instead unemployment that was growing in the transition from Bush to Obama has exploded to double what it was under Bush. Even worse this means that while 14,885,000 Americans are claiming unemployment assistance, some 23,768,000 families are presently struggling through work that they have but are unable to meet their basic needs.

And about the time we are belting out Auld Lang Syne this holiday season, President Obama will raise all five income levels of tax categories between 3-5%.

Ironically the President will be raising the rate on the category that is home to seventy-five percent of all small businesses in America by the largest increase.

I call it ironic because it is the small business community in America that hires 2 out of every 3 new workers in America.

Eventually it all adds up.

The president is not pushed on this issue by the press. The president's team pretends that these realities do not exist. The president himself is willing to perpetuate the false notion that the stimulus package set up a "recovery summer" that in truth ended up in greater pain than it began with.

None of this takes into effect the additional costs that will be incurred by taxpayers when the full implementation of President Obama's control of one-sixth of the economy through the manipulation of how we receive health care benefits kicks in. And not that it has great likelihood of passing this year, but if by some miracle it did, the Obama tax penalties that would be incurred by every citizen in the nation under the proposed "Cap & Trade" legislation would add even greater misery to the growing pile.

All of these pending tax increases will be put into effect against well more than 95% of American tax-payers. Speaking of which that certainly contradicts his most famous campaign line.

In 1929 Irving Fisher observed that a number of trends led to the worst depression of our nation's history.

How many of these fit in today's scenario:

Debt liquidation and distress selling

Contraction of the money supply as bank loans are paid off

A fall in the level of asset prices

A still greater fall in the net worths of business, precipitating bankruptcies

A fall in profits

A reduction in output, in trade and in employment.

Pessimism and loss of confidence

Hoarding of money

A fall in nominal interest rates and a rise in deflation adjusted interest rates.

President Obama is ignoring and misrepresenting the rate of growth (or lack thereof) in the job numbers, and his economic team has laid the groundwork for the harshest attack on small businesses and every family in America that pays taxes effective January 1, 2011.

By every indicator this pundit can see, we are poised for tragedy... and I didn't get an Ivy League education!